Fujikura to Own AFL Telecommunications

PITTSBURGH, Jan. 20 -- Alcoa announced it has signed a letter of intent with Fujikura Ltd. of Japan in which Alcoa will obtain complete ownership of AFL Automotive, based in Detroit, and Fujikura will obtain complete ownership of AFL Telecommunications, based in Nashville, Tenn. Alcoa and Fujikura currently hold a 51-49 percent respective ownership of both through the Alcoa Fujikura Ltd. (AFL) joint venture. The transaction moving Alcoa to complete ownership of AFL Automotive is expected to be completed by the Spring of 2005. It will be implemented through an exchange by Fujikura of all of its AFL shares for all shares in a new telecommunications subsidiary, including cash.

"This transaction will enable both Alcoa and Fujikura to focus on their core capabilities," said Robert T. Alexander, Alcoa Vice President and Chairman of Alcoa Fujikura Ltd. "AFL Automotive is a large part of Alcoa's approximately $3 billion automotive franchise, and this transaction increases our position in this strategic market, helping us serve our automotive customers globally. Telecommunications is much more core to Fujikura and strengthens their presence in the US."

AFL Telecommunications provides fiber optic products, engineering expertise and integrated services to the telecommunications industry. It produces and installs fiber optic products and equipment that communications providers need to provide high-speed voice, video and data services to their customers. It has approximately 2000 employees at 19 locations in three countries. It has facilities throughout the US, in Monterrey, Mexico, and in the UK.

AFL Automotive is a world leader in the design, development and production of electrical and electronic distribution systems for personal and commercial vehicles. AFL connects with vehicle manufacturers and their sub-suppliers in automotive centers including China, Japan, Asia, Europe and the US. AFL Automotive has approximately 34 locations in 15 countries and 33,500 associates around the world.

Alcoa said it will include AFL Telecommunications in discontinued operations until the transaction is completed, for financial reporting purposes.

For more information, visit: www.alcoa.com